Editor's Note:

The stock market is showing a lot more resilience than expected, especially after last week's dismal jobs report. Right now there is a lot of hope on the Federal Reserve to launch a new QE program before the year is out. This decision has already been factored into the market and if the FOMC fails to do so then stocks could see some very sharp profit taking.

Technically the market remains very overbought and due for a correction anyway. While it would be natural to see this pullback sparked by third-quarter earnings results any pullback will be battling some last minute window dressing (buying) before fiscal yearend for many mutual funds on October 31st.

We don't want to chase the market at these levels so we're focusing on strong stocks we want to buy on a dip. I just added three new candidates to the watch list.